Eight major commercial banks in South Korea plan to jointly establish a Korean Won Stable Coin issuance joint venture company

On June 25, South Korea's "Economic Review" reported that South Korea's eight major commercial banks joined forces to form a won-based Stable Coin joint venture, aiming to counter the global Stable Coin market dominated by the US dollar and actively compete for dominance in the digital asset field. Eight participating banks, including Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Corporate Bank, Fisheries Cooperative Bank, Citibank Korea, and Standard Chartered First Bank, are preparing to establish a joint venture "Stable Coin pegged to KRWK" in collaboration with the Open Block Chain, the DID Association, and the Korea Financial Settlement Institute. This is the first time that the Korean banking industry has entered the digital asset business in the form of an alliance, and is seen as a signal that the private sector is officially responding to the reality of digital assets. At present, the banks are discussing the construction of joint infrastructure, and it is expected that the feasibility of establishing a joint venture company will be realized by the end of this year or early next year at the earliest, after the completion of the relevant legal system. As for the issuance model of Stable Coin, it has not yet been finalized, and two options are being evaluated from the technical and legal levels: 1. The credit accomplice model: the customer funds will be accompliced and then issuedToken; 2. Deposit Token type: issuanceToken is linked to bank deposits 1:1.